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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1126:
Post-Reform Trends in Wage Inequality: The Case of Urban Bolivia

Julius Spatz and Susan Steiner

Abstract: This paper seeks to contribute to the ongoing controversy on the distributional effects of structural reforms in developing countries. Applying inequality indices and FieldsÂ’ (2001) decomposition methodology to Bolivian household survey data of the years 1989 to 1997, we identify recent trends in wage inequality of urban Bolivia. Using a rent-based dual-economy model, we can link these trends to the structural reforms undertaken in Bolivia since 1985.

Keywords: Structural Reforms, Inequality, Dual Economy, Bolivia; (follow links to similar papers)

JEL-Codes: D31; J50; L16; O17; (follow links to similar papers)

58 pages, September 2002

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